STATEMENT OF MAYOR MICHAEL R. BLOOMBERG ON PROPOSED OFF TRACK BETTING AGREEMENT THAT WOULD SADDLE CITY TAXPAYERS WITH UP TO $200 MILLION IN LIABILITIES

“Yesterday, Governor Paterson
announced a plan to put City taxpayers on the hook for more than $100 million –
and potentially up to $200 million – in retiree health care costs in order to
keep the Off Track Betting Corporation in business. The plan requires
legislative and legal approvals and we are going to fight, using all available
options, to ensure it does not become a reality. For years we have said OTB was
a losing bet, because only in government can you run a bookie operation and
actually lose money every year. It’s simply not something the City should be
paying to subsidize. Two years ago, we wanted to get the City completely out of
the OTB business, but the State wanted to keep it afloat. We had a clear agreement that the State could take over the operation, as
long as the State assumed all assets and liabilities of OTB.
The State is
pitching this proposal as good for New Yorkers, when it’s really just breaking a
deal and leaving City taxpayers holding the bag, potentially to the tune of $200
million.

“Enough is enough. We’ve worked hard to keep the City’s fiscal house in order
and we cannot be saddled with another massive unfunded mandate or forced to pay
for another reckless decision made in Albany.”